TMI Blog2020 (5) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... cial Member And Shri Manish Borad, Accountant Member For the Appellant : Shri S.S. Deshpande, CA For the Revenue : Shri S.S. Mantri Sr., DR ORDER PER MANISH BORAD, AM. The above captioned appeal filed at the instance of assessee pertaining to Assessment Year 2014-15 is directed against the orders of Ld. Commissioner of Income Tax (Appeals) (in short Ld.CIT(A) ], Indore dated 16.11.2017 which is arising out of the order u/s 143(3) of the Income Tax Act 1961(In short the Act ) dated 26.11.2016 framed by ACIT,2(1) Ujjain. 2. Assessee has raised following grounds of appeal; That the Ld. CIT(A) has erred in confirming the addition of ₹ 39,86,369/- by assessing net profit @ 10% on total turnover of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enance of books of account in order to declare the net profit at his convenience. The appellant is carrying out the' contractor business since long time. The appellant has not maintained the books of account therefore the statutory requirement of getting the books of account audited was also not complied. The appellant has also not prepared. the profit and loss account. All the contractors more or less having such voluminous business are maintaining the books of account therefore, it is mandatory on the part of the appellant to maintain the books of account. The appellant has deliberately not maintained the books of account. The appellant has not submitted the method of estimating the net profit @ 5% and filing the return of income. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orities. 7. We have heard rival contentions and perused the records placed before us. Sole grievance of the assessee is against the application of net profit @ 10% as against the 5% declared by the assessee. The total turnover of the assessee as a civil contractor amounted to ₹ 7,79,27,381/- under the year under appeal. The gross receipt being business receipts is not in dispute before us. Regular books of accounts were not maintained. Financial statements are not audited. Both the lower authorities had applied net profit @ 10% but assessee had declared net profit @ 5%. 8. Provisions of section 44AD of the Act relates to special provision for computing profits and gains of business on presumptive basis . undoubtely, the provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r to both the parties. We, however, would like to make it clear that our this decision of applying of 8% net profit rate on total turnover exceeding the limit prescribed u/s 44AB of the Act where books of accounts are not maintained properly shall not be taken as binding precedence for other cases, as much depends on facts and circumstances of the particular case and thus the decision of applying net profit rate may vary from case to case. Accordingly, revenue is directed to sustain the addition in the hands of assessee only to the extent of applying net profit rate of 8% on total turnover and thus addition of ₹ 23,91,821/- is sustained. Sole ground of the assessee s appeal is partly allowed. 10. In the result appeal of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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